Collection Agency Selection

Frankly, given the legal and regulatory requirements involved in attempting to collect a debt, it makes as much sense to do it yourself as it does to try to remove your own appendix. A collection agency is, on the whole, much cheaper than a doctors - and lawyers. Do yourself a favor and let a professional collection agency handle this complex matter for you.

It is an unfortunate fact that the collections industry is not regulated much by the government. Absolutely anybody can set themselves up with an "office" and call themselves a collection agency. You don't have to be certified or accredited by anybody.

You don't need any kind of special degrees or anything like that to start a collection agency. So, while there are plenty of reputable, ethical collection agencies out there, are also plenty of con artists. It's a case of buyer very much beware.

Beyond making sure the collection agency is credible, you'll need to make sure they are right for your business. Each collection agency may have different specialties and, even if they don't, they might not have the specialized knowledge required to collect in your industry. A collection agency working in medical collections must be familiar with medical terminology and insurance requirements. Make sure the collection agency has the skills and knowledge needed to successfully collect on your particular type of account.

You will also have to consider the fact that the collection agency will have to be paid for their services. A collection agency usually charges you a percentage of the money they collect on your behalf; currently the industry standards range from 25% to50%, depending on the dollar amount of the account, the age of the account, how much overall business the collection agency gets (or expects to get) from you in the long run, and other factors. Some collection agencies charge a low flat fee per collection which may be a more affordable solution for some businesses.

What you really want to know about this collection agency, however, is what they quote as their average recovery rate. The collection agency cannot guarantee that they are going to collect the money you are owed, because their ability to do so will dependent on many unforeseen factors. But the collection agency can give you a percentage of approximately how much their collection agency collects of the accounts that are placed with them, in general and in your particular industry. That is going to be much more important than their commission rate.

Finally, you'll want to check your potential collection agency out with both the Better Business Bureau and your state's Attorney General's Office. Specifically, it is important to discover if there have been any complaints registered against them by disgruntled former clients, or if they have had to defend themselves against alleged violations of the Fair Debt Collection Act. Remember that this collection agency will be representing you and your business. You don't want the sort of collectors who threaten to break people's knee caps, or call their neighbors to harass them. Make sure you're dealing with real professionals.

With the right kind of collection agency, you will be able to develop a real working relationship with the account executive who is servicing your account. These guys can be enormously helpful, particularly when it comes to dealing with bad-tempered debtors. There are going to be distinct legal limits to the kinds of things you can say and do, no matter now nasty people who owe your money become, and consulting your collection agency rep is a lot cheaper than talking to your lawyer. As long as all parties involved recognize the fact that yours is a partnership, in which both of you treat each other professionally, you will be well on your way to a good, long-term working relationship.

Collection Agency Outsourcing offers you free information on collection agencies and debt collections issues.

---

Mobile Pressure Washing and Cleaning Scheduling

If you own a mobile car washing, pressure washing or... Read More

Equipment Maintenance Manual for Mobile Cleaning Business Outline

Service Cleaning Businesses must maintain their equipment in order to... Read More

9 Things You Must Do To Maximize Your Chances Of Obtaining A Small Business Loan

To get approval for your small business loan application, you... Read More

Do Home Businesses Complicate Small Business Debt Collection Laws?

The home-based business market, sometimes called the SOHO (small-office/home-office) market,... Read More

How Mastering 5 Essential Money Making Ideas Can Lead Your Business to Longterm Cashflow

Essentially there are 5 tremendously powerful methods to make money... Read More

Small Business - A Thing Worth Doing Is Worth Doing Badly

A thing worth doing is worth doing badly. Yes I... Read More

So You Don?t Believe in Outsourcing

Entrepreneurs are hardy stock. But sometimes hardiness can get you... Read More

Franchising in The Middle East There Will Bring Significant Opportunity for US Based Franchisors

As stability emerges in the Middle East there will be... Read More

What Your Small Business Can Learn From The Doctor

Most doctors never distinguish the difference between customers and patients.... Read More

How to Prevent Home Business Burnout

As a home business proprietor, you may already realize why... Read More

Choosing a Truck Wash Location in Nevada, Case Study

There are several well-known truck washes in the Great State... Read More

Find Your Niche & Follow It - Part 1

In this series of articles I'm going to show you... Read More

Pressure Washing Business and Post Fire Cleanups

Many have not experienced a fire up close. One year... Read More

What Happened to the Money and Freedom?

Ask anyone trapped in a cubical about their entrepreneurial dream... Read More

Starting An E-Commerce Business: Baby Steps

Starting your own e-commerce business can be quite the adventure.... Read More

Power Tools for Business

How do we keep track of our business deals?If you... Read More

A Look at Small Business Incorporating in Florida

The choice to incorporate a small business in Florida has... Read More

Truck Wash Business Case Study

Often smart entrepreneurs look for out of the way businesses,... Read More

Small Business Security No Passing Fad

How careful are you with the data you collect from... Read More

Have You Thanked Your Competitors Today?

Competition in the business world is often viewed as a... Read More

The Single Most Powerful Small Business Marketing Tool On The Planet

Let me get right to the point. The single most... Read More

Franchise Company Operations Manual Sample Outline

Many companies wish to expand and a few wish to... Read More

6 Ways Small Businesses Can Survive In A Crazy Economy

Contrary to popular belief, small businesses can survive a crazy... Read More

Business Owners - Do You Actually Own a Job?

How many hours do you work a week? When was... Read More

Is Your Small Business Name Important?

You bet a name is important. Many small business owners... Read More

Boy oh Boy, The Obstructions and Obstacles

The bad things starts with the letter 'O'?.like Obstacles, Obstruction,... Read More

Postcards Make It Rain Referrals

One of the simplest ways to expand your marketing efforts... Read More

Expanding A Mobile Car Wash Business

What is the best time to expand a mobile car... Read More

Entrepreneurs Ask: What Can a Virtual Assistant Do For Me?

Great question!Freeing your time is an indisputably key element in... Read More

The Types of Skip Trace Accounts

First, we need to define the different kinds of skip... Read More

How to Write a Credit Policy for Your Business

The book, "Become the Squeaky Wheel," by New Hampshire author... Read More

5 Tips for Hiring a GREAT Bookkeeper

Bookkeeping?the "dreaded" word is something we all have to worry... Read More

How To Cut Expenses And Manage Your Business

If you own a small business, you should know that... Read More